Term vs. Whole vs. IUL: Understanding Your Options with True North Legacy

Choosing the right life insurance policy is one of the most important financial decisions you'll ever make. At True North Legacy, our mission is to help families, professionals, and business owners create a clear path toward long-term security. To do that, it’s crucial to understand the differences between the three most common types of life insurance: Term, Whole Life, and Indexed Universal Life (IUL).

Below is a simple breakdown that removes the confusion and gives you the clarity you need to make an informed decision.

What Is Term Life Insurance?

Term life insurance is the simplest and most affordable type of coverage. It provides protection for a set number of years—usually 10, 20, or 30.

Benefits

• Low cost, high coverage: Ideal for young families or anyone needing maximum protection at a budget-friendly rate.

• Straightforward: No cash value or investment components.

• Temporary but effective: Perfect when you want coverage during working or child-raising years.

Best For

Families on a budget, individuals wanting large coverage amounts, mortgage protection, and income replacement.

What Is Whole Life Insurance?

Whole life insurance lasts for your entire lifetime and includes a guaranteed cash value component that grows steadily over time.

Benefits

• Permanent coverage: Your loved ones are protected no matter when you pass.

• Guaranteed cash value growth: Builds savings that can be accessed through loans or withdrawals.

• Predictable premiums: Your rates never increase.

Best For

Long-term legacy planning, wealth transfer, predictable financial planning, and individuals wanting stability in their portfolio.

What Is Indexed Universal Life (IUL)?

Indexed Universal Life is a permanent policy like whole life, but with more flexibility and growth potential. Your cash value grows based on the performance of a market index (such as the S&P 500), without the risk of losing cash value due to market downturns.

Benefits

• Higher growth potential: Upside linked to market performance.

• Downside protection: Your cash value won’t drop from market losses.

• Flexible premiums: Pay more when times are good, less when they’re tight.

• Retirement-focused: Popular for tax-free income strategies.

Best For

Business owners, high-income earners, tax-conscious savers, and anyone seeking a balance between protection and tax-advantaged growth.

Which Policy Is Right for You?

Each policy has its strengths, and the right one depends on your goals:

• Term Life: Maximum coverage for the lowest cost.

• Whole Life: Lifetime guarantees and slow, steady cash value.

• IUL: Long-term growth potential and tax-advantaged income opportunities.

At True North Legacy, we take a personalized approach—helping you match the right policy to your family, your financial goals, and your future legacy.

Ready to Find Your True North?

If you want clarity on which policy fits your needs, we’d love to help you map out the right plan.

👉 Schedule a quick, no-pressure appointment with a True North Legacy advisor today.
Together, we’ll build a strategy designed to protect your family and grow your legacy for generations.